A.M. Best has completed its evaluation of Los Angeles-based Topa Insurance Company and affirmed a rating of “A-” (Excellent) with a stable outlook. Topa Insurance Company’s financial size rating is class VII.
The rating is based on the consolidation of Topa Insurance Company and its wholly owned, separately rated subsidiary, Dorchester Insurance Company Ltd. The rating reflects the group’s solid capitalization, prudent loss reserving practices and diversified product offerings.
The group’s positive rating factors are derived from management expertise in taking advantage of market dislocations, moderate underwriting leverage and catastrophe mitigation strategies that insulate earnings and surplus from shock loss volatility. The rating also reflects the close monitoring of aggregate property exposures and controlled distribution platform. In addition, management has implemented a number of strategic initiatives in recent years to improve profitability that have included rate adjustments, tightened underwriting guidelines, reduced expense levels, new technology systems, and the discontinuance of unprofitable agencies and lines of business.
The group’s parent, Topa Equities, Ltd., also provides operational and financial support through its various operating subsidiaries and multiple revenue streams.
Topics AM Best
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